Lucidao
3 min readMay 25, 2023

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Unlocking the Value of Luxury Collectibles: A deep-dive into Altr’s lending feature

Collectibles have always carried a sense of allure and prestige, but recent advancements in technology have added an extra dimension of value to these prized assets. Altr aims to combine the world of luxury collectibles and blockchain technology, giving users unprecedented access to luxury collectibles with financial flexibility.

Transforming Collectibles with Altr

Altr is redefining the luxury collectibles landscape by bridging the physical and digital realms. It uses blockchain technology to create digital certificates, or Non-Fungible Tokens (NFTs), representing ownership of the underlying assets. These NFTs are not only a digital representation of ownership but also serve as collateral in Altr’s innovative lending functionality.

The Altr Lending Functionality Explained

Altr’s lending functionality operates on a peer-to-peer basis, facilitated by liquidity providers. Loans are given in the form of USDT, a popular stablecoin pegged to the value of the US dollar, ensuring the stability of the borrowed amount.

The platform employs a unique system of oracles in the form of reputable and well-known dealers. This includes renowned auction houses, trusted collectors, and expert assessors. These experts, recognized for their credibility and knowledge, assist in the valuation of the item, and a ‘liquidity score’ is assigned to each collectible based on market conditions and desirability, determining the appropriate loan-to-value (LTV) ratio. The higher the liquidity score, the higher the LTV ratio.

Once valued, the physical collectible is stored in a secure freeport vault, fully insured, with expert maintenance ensuring its safekeeping. This rigorous process guarantees the integrity of the item, providing assurance for both the borrower and the liquidity provider.

Altr has established a transparent structure of interest rates and platform fees. Specifically, for loan periods of 1 month, 3 months, 6 months, and 12 months, the Annual Percentage Rates (APR) plus fees are respectively 8.8%, 9.5%, 10.3%, and 11.2%. The platform also levies an origination fee that decreases with higher loan amounts and a spread fee of 1.5% on the total lent amount. This structure is set to adapt as the product matures and gains traction, potentially introducing new time frames.

The Rolex Daytona 6263 Paul Newman Panda Mk 2: A Case Study

To illustrate Altr’s groundbreaking functionalities, consider the Rolex Daytona 6263 Paul Newman Panda Mk 2. With a striking Panda dial and the association with the iconic Paul Newman, it’s a timepiece that carries a legacy and charm like no other. This coveted vintage watch, valued at $500,000 in this case study example, is a significant investment piece.

Using Altr, a collector can digitize this watch, turning it into an NFT with a liquidity score that can be used as collateral. With an LTV of 50%, the owner can secure a loan of $250,000 in USDT. Depending on the loan period, the interest payable and fees vary. For instance, if the loan period is 3 months, the interest payable plus fees would be $7,213.01. If the loan period is 12 months, the interest plus fees would be $29,275.51. This provides financial flexibility to the owner without the need to sell this unique collectible.

Revolutionizing the Collectibles Space

Altr is poised to revolutionize the luxury collectibles industry, providing a secure, transparent, and innovative way for collectors to unlock their high-value assets while maintaining ownership. By leveraging the power of blockchain and digitization, Altr is not only streamlining the process of buying, selling, and storing high-value items but also opening up new opportunities for collectors and investors alike.

With this in mind, there’s no better time than now to explore the world of digital luxury collectibles. We are excited to share more developments and collaborations as we progress, solidifying Altr’s position as the leading platform in the digitized luxury collectibles industry. Stay tuned!

https://linktr.ee/Lucidao

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Lucidao

Lucidao is the bridge between your real-world assets and the blockchain.